Landlords are selling up their properties but buy to let still remains buoyant
More than one in four landlords and letting agents put up buy to let rents in January.
Numbers putting up rents had dropped from 31 per cent in September to 18 per cent in December, but the start of the year saw a hefty increase to 26 per cent, says letting agent trade body ARLA. Year on year, the number of tenants paying more rent has risen by seven per cent.
ARLA also revealed the average letting agent branch saw a slight increase in the number of properties available to rent – up from 193 to 197.
A year ago, letting agents had 182 homes to let – down eight per cent from 200 in December 2017.
Demand was also up, with 73 home hunters registered at each branch, compared to 50 a month earlier and 70 a year ago.
“This month’s results are another huge blow for tenants. With demand increasing by 46 per cent from December, and rents starting to rise in response to all the cost increases landlords have experienced over the last few years, tenants are in for a rough ride,” said ARLA chief executive David Cox.
“With the Tenant Fees Act passing its final hurdle in the House of Commons and receiving Royal Assent this month, tenants will continue bearing the brunt, as agents and landlords start preparing for a post-tenant fees world.”
Cox also warned landlords are leaving buy to let, which will lead to fewer homes for rent.
“Last month, there were three landlords selling their buy to let properties per branch, and as landlords continue to exit the market, rent prices will only continue to rise,” said Cox.
Average number of tenants paying higher rents